Help - mortgage want to charge me £3000 to leave even though product doesn't start until Jan 2023

diolchynfawr

I have two parts to my mortgage.  The first part comes to an end in December. I had to buy my husband out so livng on my own.  When the mortgage rates were going mad I arranged a fixed deal for 3 years (6% ish) I was told that I could get a better deal if the mortgage rate comes down.  The rate with accord is now 5.27 for the same product. They have told me that I cannot come out of the product as it is beyond the 2 week cooling off period so I have to pay £3000.  I have told them that this wasn't what I was advised.  A complaint has been submitted.  Any advice?

MattMattMattUK

diolchynfawr said:

I have two parts to my mortgage.  The first part comes to an end in December. I had to buy my husband out so livng on my own.  When the mortgage rates were going mad I arranged a fixed deal for 3 years (6% ish) I was told that I could get a better deal if the mortgage rate comes down.  The rate with accord is now 5.27 for the same product. They have told me that I cannot come out of the product as it is beyond the 2 week cooling off period so I have to pay £3000.  I have told them that this wasn't what I was advised.  A complaint has been submitted.  Any advice?

Who advised you and in what form? Was it advice, as in regulated by a mortgage advisor, or was it unregulated? 

Exodi

MattMattMattUK said:

diolchynfawr said:

I have two parts to my mortgage.  The first part comes to an end in December. I had to buy my husband out so livng on my own.  When the mortgage rates were going mad I arranged a fixed deal for 3 years (6% ish) I was told that I could get a better deal if the mortgage rate comes down.  The rate with accord is now 5.27 for the same product. They have told me that I cannot come out of the product as it is beyond the 2 week cooling off period so I have to pay £3000.  I have told them that this wasn't what I was advised.  A complaint has been submitted.  Any advice?

Who advised you and in what form? Was it advice, as in regulated by a mortgage advisor, or was it unregulated? 

And if it is regulated advice, are you able to substantiate it?

I'd be very suprised if a lender told you this, as you'd expect they'd know their own terms and conditions (but stranger things have happened I guess).

I understand that it leaves a bitter taste in ones mouth...

14th Day: "sure you can change for free"
15th Day: "impossible, only way is if you give us £3k"

Even if you weren't able to have them change it without penalty, on my ~£250k mortgage, the difference between those interest rates is about £100 p/m... so with your options I'd save about £600 over the three years changing to the new fixed deal... crazy.

diolchynfawr

The mortgage advisor is attached to Accord as the other part of my mortgage is also with them.  

Exodi

diolchynfawr said:

The mortgage advisor is attached to Accord as the other part of my mortgage is also with them.  

What does attached mean? Do they work for Accord?

How did you speak to them? Was it by telephone? If you're sure they advised you that you could change your mortgage up until you physically paid the first payment, then it may be worth asking for a copy of the telephone recording?

dunstonh

 I have told them that this wasn't what I was advised.

As you say you were advised, your adviser would have put the terms in writing to you.  So, what does the adviser state in writing?

The mortgage advisor is attached to Accord as the other part of my mortgage is also with them.  

Are you sure?   Whilst it is possible they do have advisers, I didn't think Accord did.  I thought they only made their product available via intermediaries.   And anything they do from an administration point of view is non-advised clerical work.

I suspect you didnt use an adviser in that case.

at the end of the day, it will come down to the recording of the telephone call.

housebuyer143

Did you redeem the mortgage offer? You can't come out of the fixed mortgage for a better rate once it has started without incurring the ERC. I would be surprised if any advisor told you that. 

JMA74

diolchynfawr said:

I have two parts to my mortgage.  The first part comes to an end in December. I had to buy my husband out so livng on my own.  When the mortgage rates were going mad I arranged a fixed deal for 3 years (6% ish) I was told that I could get a better deal if the mortgage rate comes down.  The rate with accord is now 5.27 for the same product. They have told me that I cannot come out of the product as it is beyond the 2 week cooling off period so I have to pay £3000.  I have told them that this wasn't what I was advised.  A complaint has been submitted.  Any advice?

Who is the current mortgage with?  Accord?

And you arranged a forward dated Product Transfer to start at the beginning of January when your current deal expires? 

You were under the impression that you could cancel this agreement and take a new one if the rate was lower as long as it hadnt changed over yet

This has been quite a common thing to do for clients over the last few months and the vast majority of lenders allow this in some form.  
It may be the case that there has been some misinformation given to you and Accord may have a policy where you are locked in once the button is pressed (i dont know the answer and i cant easily find it online).

What i can see is that if you spoke to an accord mortgage advisor then this is an advised service. The only non advised service is through the online portal.   Also being a large financial institution means its pretty much a certainty that they record all their calls so if i was in your shoes I would raise a complaint that you have been misinformed and you might have made a different decision if the information given to you was accurate.   

I would expect them to listen to the call recording and if you have been given wrong info then they will put it right and move you to the cheaper deal without penalty.  

Just got to make contact and take it one step at a time.  

On another point,   no chance that moving to a new lender is beneficial?  That still isnt a great rate that you are trying to move to